Out-Educating the Competition

Uploaded by whitehouse on 18.02.2011

Mr. Otellini: Good morning.
Good morning; what a great day.
I wanted to add my welcome to this morning and, in particular,
welcome Governor Kitzhaber over there,
and thank you for being here.
I'm excited to be here today to celebrate American innovation
and American manufacturing.
Our country and this company have been built on innovation --
and manufacturing has been at the heart of America's economy
for over a century.
Technology and the semiconductor industry have been driving
economic growth for the last 50 years.
In fact, when averaged over the last five years,
the semiconductor industry is the nation's number one exporter.
Today, we celebrate the construction of Intel's new
semiconductor manufacturing plant, called D1X.
For the past two years, I've been discussing the need to
re-ignite innovation in the U.S. as a means of creating jobs and
wealth in our society.
I believe the world of technology and a vibrant
manufacturing base lies at the heart of creating this future.
This is one of the reasons for our continued investment in
Oregon, and our commitment to build Fab D1X.
This new factory will play a central role in extending
Intel's unquestioned leadership in semiconductor manufacturing.
The transistors and chips it will produce will be the most
dynamic platform for innovation that our company has ever created.
Together, they will enable more capable computers,
the most advanced consumer electronics and mobile devices,
the brains inside the next generation of robotics,
and thousands of other applications that have yet to be invented.
I'd like to pause for a moment to give you a glimpse of what
will be involved in creating such a technologically advanced operation.
♪(music playing)♪
(cheers and applause)
Wouldn't it be great if it was that easy and that cheap?
Seriously, D1X will be a vital addition to what's already one
of the largest and most advanced semiconductor research and
manufacturing sites in the world.
Building it, we will create approximately 3,000 construction
jobs over two years.
The structure will require 19 tons of steel, 40 miles of pipe,
13,000 truckloads of cement.
When finished, D1X will have a clean room as big as four
football fields.
It is scheduled for startup in 2013,
and it will be the first 14-nanometer microprocessor
factory in the world.
Intel's a global company today, and proudly so.
Yet, we think of ourselves as an American enterprise.
Intel generates three-fourths of its revenues overseas,
yet maintains three-fourths of its manufacturing here in the
United States.
The company sets the bar for world-class manufacturing around the world.
We believe in this country's power to create a future where
America maintains its unparalleled global leadership
and where jobs in 21st century industries are created and flourish.
I'm pleased that the President and his administration have
taken a number of steps to invest in innovation and
education so that we are building the skills needed to
achieve success in the 21st century and to grow the economy.
At Intel, we believe that we will help create the future.
Building such a future requires more than just investments in
technology and manufacturing.
We also need to invest in educating and training the
workers that will invent and manage the industries of the future.
At Intel, for example, over half of our 82,000-person workforce
have technical degrees and nearly 8,000 people hold a
Master's degree or Ph.D.
Looking forward, we are concerned that there may be a
shortfall of qualified experts in science and math in our --
in this country to meet the needs of our industry.
There are two fundamental solutions to this problem.
First, revitalizing math and science education will generate
qualified, interested, and motivated students,
and drive increased enrollments in our great graduate schools.
Then, government and businesses need to make sure that all of
these graduates are given the opportunity to work in this
great country.
I want to commend the President for his leadership and focus on
improving our science, technology, engineering,
and math education.
He has taken actions -- including key steps,
like making STEM a priority -- in his $4 billion Race to the
Top competition and his Educate to Innovate campaign.
I'm proud to tell you that over the last decade,
Intel has invested nearly $1 billion in education around the
world, especially math and science education.
Our Intel Teach program has already trained more than nine
million teachers worldwide -- with nearly half a million right
here in the in the U.S. -- to integrate technology into the
learning process.
The result is improved critical thinking and problem solving skills.
We view these efforts -- and our other education initiatives --
as vital investments in the next innovators, thinkers,
scientists, and entrepreneurs.
This investment comes full circle when we can then hire the
people we're investing in.
I'm proud to announce that this year,
Intel will hire 4,000 new permanent,
highly skilled employees in the U.S. above and beyond the
factory jobs I've previously mentioned.
These new employees will focus on areas that span the
exploration of new materials to create even smaller transistors,
to products that we believe will transform the way that health
care and education are delivered,
to future technologies that involve augmented reality and
computers that can read minds -- or at least anticipate your needs.
The investments I've discussed today are long-term investments
in the things that make innovation possible.
They also send a clear message that the United States will
remain the location for Intel's most advanced technology
development and manufacturing.
And I've saved the best news for last --
I'm happy to announce another new multi-billion dollar
investment in America.
Intel will soon begin construction in Arizona on a
greater than $5 billion manufacturing facility that we
will call Fab 42.
This fab will focus on 14-nanometer silicon process
technology and beyond.
When completed, Fab 42 will be the most advanced high-volume
semiconductor factory in the world.
This activity will create thousands of construction and
permanent manufacturing jobs in this country above and beyond
what I've described earlier.
My closing message is that the best way forward for us is to
unleash the unmatched creative energies of the people of this
country to transform our manufacturing base for the 21st century.
Intel is proud to do its part in creating this promising future.
With that, ladies and gentleman, I'm pleased to introduce the
President of the United States.
The President: Thank you.
Thank you so much.
Thank you, everybody.
Thank you.
Everybody, please have a seat.
Thank you so much.
I am thrilled to be here.
I want to, first of all, thank Paul for that introduction,
and I want to thank Paul for agreeing to be part of our
administration's new Council on Jobs and Competitiveness.
I look forward to our continuing conversations when we meet next week.
I also want to acknowledge a wonderful governor,
Governor Kitzhaber, who is here.
Thank you so much for all the work that you're doing.
And the mayor of Hillsboro, Jerry Willey,
thank you for the great work that you do.
And I want to thank everybody here at Intel for hosting us
here today.
We just had an amazing tour.
One of my staff, he said, it's like magic.
He did, that's what he said.
I had a chance to see everything from an electron microscope to
the inside of your microprocessor facility,
the clean room.
And I have to say, for all the gadgets you've got here,
what actually most impressed me were the students and the
science projects that I just had a chance to see.
It gave them a chance to talk about things like quantum
ternary algorithms --
-- and it gave me a chance to nod my head and pretend that I
understood what they were talking about.
(laughter and applause)
So that was the high school guys.
Then we went over to --
-- seriously.
Then we went over to meet some seventh graders, six girls,
and it was wonderful -- all girls --
who had started a science project after school that
involved Legos.
So I'm thinking, now this is more my speed.
I used to build some pretty mean Lego towers when I was a kid.
I thought I could participate -- only these students used their
Legos to build models -- to build robots that were
programmable to model brains that could repair broken bones.
So I guess that's different than towers.
It's not as good.
The towers.
So I couldn't be prouder of these students and all the work
that they've done.
And in my State of the Union address,
I said that it's not just the winner of the Super Bowl who
deserves to be celebrated, but also the winner of science fairs.
And since the Packers beat my Bears --
-- I'm reserving all my celebrating for the winners of
the service fairs this year -- the science fairs.
They deserve applause.
They deserve our applause and our praise,
and they make me optimistic about America's future,
just as visiting this facility makes me optimistic about
America's future.
I'm so proud of everybody here at Intel,
not only because of what you do for these students or this
community, because -- but because of what you do for the country.
A few weeks ago, I went to the Chamber of Commerce and I talked
about the responsibility that American businesses have to
create jobs and invest in this country.
And there are few major companies that take this
responsibility as seriously as Intel.
In 1968, Intel started as one of Silicon Valley's first start-ups.
And as you grew in leaps and bounds in the '80s and the '90s,
you experienced the competitive pressures of globalization --
the changes in technology that made it cheaper for many
computer companies to start hiring and manufacturing overseas.
And over the years, you've done some of this yourself.
And yet, by and large, Intel has placed its bets on America.
As Paul just mentioned, three-fourths of your
manufacturing still happens right here in the United States.
This year you'll hire another 4,000 American workers.
You'll create good construction jobs upgrading your facilities
and building new plants in Arizona and right here in Oregon.
And this kind of commitment has always been part of Intel's philosophy.
The founder of this company, the legendary Andy Grove,
has said that he's always felt two obligations.
One obligation is to your shareholders.
But the other obligation is to America,
because a lot of what Intel has achieved has been made possible,
in Andy's words, "by a climate of democracy,
an economic climate, and investment climate provided by
our domicile, the United States."
Intel is possible because of the incredible capacity of America
to reinvent itself and to allow people to live out their dreams.
And so the question we have to ask ourselves now is,
how do we maintain this climate that Andy Grove was talking about?
How do we make sure that more companies like Intel invest
here, manufacture here, hire here?
In a world that is more competitive than ever before,
it's our job to make sure that America is the best place on
Earth to do business.
Now, part of that requires knocking down barriers that
stand in the way of a company's growth,
which is why I've proposed lowering the corporate tax rate
and eliminating unnecessary regulations.
It also requires getting our fiscal house in order,
which is why I've proposed a five-year spending freeze that
will reduce the deficit by $400 billion.
That's a freeze that will bring our annual domestic spending to
its lowest share of the economy since Eisenhower was President.
Now, to really get our deficit under control we're going to
have to do more.
And I want to work with both parties to find additional
savings and get rid of excessive spending wherever it exists,
whether it's defense spending or health care spending or spending
in the tax code, in the form of loopholes.
But even as we have to live within our means,
we can't sacrifice investments in our future.
If we want the next technological breakthrough that
leads to the next Intel to happen here in the United States
-- not in China or not in Germany,
but here in the United States -- then we have to invest in
America's research and technology;
in the work of our scientists and our engineers.
If we want companies like yours to be able to move goods and
information quickly and cheaply, we've got to invest in
communication and transportation networks,
like new roads and bridges, high-speed rail,
high-speed internet.
If we want to make sure Intel doesn't have to look overseas
for skilled, trained workers, then we've got to invest in our
people -- in our schools, in our colleges, in our children.
Basically, if we want to win the future,
America has to out-build, and out-innovate,
and out-educate and out-hustle the rest of the world.
That's what we've got to do.
So today I want to focus on one component of that,
and that is education.
That's what I want to talk about today.
Over the next 10 years, nearly half of all new jobs will
require education that goes beyond a high school degree.
Times have changed.
It used to be if you were willing to work hard,
you could go to a factory and you might be able to get a job
that lasts 20 years, provide good benefits,
provide decent salary.
These days those jobs are far and few between.
Many of the jobs that are going to exist in the future,
that exist now -- like the ones here at Intel --
require proficiency in math and science.
And yet today as many as a quarter of our students aren't
even finishing high school.
The quality of our math and science education lags behind
many other nations.
As we just heard Paul say, companies like Intel struggle to
hire American workers who have the skills that fit their needs.
So we can't win the future if we lose the race to educate our children.
Can't do it.
In today's economy, the quality of a nation's education is one
of the biggest predictors of a nation's success.
It is what will determine whether the American Dream survives.
And so it's the responsibility of all of us to get this right:
parents, teachers, students, workers,
business and government.
We're all going to have to focus on this like a laser.
And over the past two years, my administration's guiding
philosophy has been that when it comes to reforming our schools,
Washington shouldn't try to dictate all the answers.
What we should be doing is rewarding and replicating the
success of schools that have figured out a way to raise their
standards and improve student performance.
And so here's what we did.
Instead of pouring federal money into a system that wasn't
working, we launched a competition.
We called it Race to the Top.
To all 50 states we said if you show us reforms that will lead
to real results, we'll show you the money.
Race to the Top has turned out to be the most meaningful reform
of our public schools in a generation.
For less than 1% of what we spend on education each year,
it has led over 40 states -- 40 --
to raise their standards for teaching and for learning.
And these standards weren't developed in Washington --
they were developed by Republican and Democratic
governors throughout the country.
Because we know that, other than parents,
perhaps the biggest impact on a child's success comes from the
man or woman who's sitting or who is standing in front of the
classroom, we've also focused a lot on teaching, on teachers.
We want to make teaching an honored profession in our society.
We want to reward good teachers.
We want to stop making excuses for bad teachers.
And over the next 10 years, with so many baby boomers retiring
from our classrooms, we want to prepare 100,000 new teachers in
the fields of science, technology, engineering,
and math -- fields that will give the students the skills
they need for the jobs that exist in places like Intel.
To ensure that higher education is within the reach of every
American, we extended -- we put an end to unwarranted taxpayer
subsidies that used to go to banks,
and we put the savings towards making college more affordable
for millions of students.
And this year, we want to make permanent our tuition tax
credit, which is worth $10,000 for four years of college.
And finally, to make sure anyone can get trained and prepared for
whatever career they pursue, we want to revitalize America's
community colleges.
Not everybody needs to go to a four-year college.
And so we've launched a nationwide initiative to connect
graduates that need a job with businesses that need their skills.
And we've drawn lessons from Intel's experience.
For years, Intel has recognized the value of these kinds of
partnerships between schools and businesses.
This company understands that your success depends on a
pipeline of skilled workers who are ready to fill high-tech jobs.
And so over the last decade, you've invested $50 million to
support education in the state of Oregon.
You've started programs --
That's worth applause.
You've started programs that get kids interested in engineering
and technology as early as elementary school,
like those six girls that I met.
You've sponsored mentoring and engineering competitions for
poor and underserved high school students.
Your employees volunteer -- some of you probably here have
volunteered -- as tutors in nearby schools and universities.
You've helped train 7,000 Oregon teachers over the last 10 years.
Your science fairs, your talent searches are some of the largest
and most prestigious in the world,
producing multiple Nobel Prize winners --
and I expect some of the students I met will qualify soon.
(laughter and applause)
And we were so grateful that Intel was one of the four
companies that initially joined our administration's nationwide
campaign to boost math and science education here in
America, as part of a new organization called "Change the Equation."
So you guys have been pretty busy here at Intel.
You've given countless students the chance to succeed,
and for that you should be very proud.
But you're not just a good corporate role model.
You're a corporation who understands that investing in
education is also a good business model.
It's good for the bottom line.
A lot of your employees were engineering undergraduates at
Oregon State or Portland State, right?
How many Beavers here, by the way?
You know my brother-in-law is coach there.
(laughter and applause)
Just wanted to -- just wanted to point that out.
They're a young team, but they're on the move.
But here's what we know.
If you can spark a student's interest in math or science who
would have otherwise dropped out,
you might not just change a child's life;
you may nurture the talent that one day discovers the
breakthrough that changes this industry forever.
In fact, before I came here, I read a story about a young
University of Oregon graduate.
His name is Nabil Mistkawi, and he joined Intel as an engineer
in 1993.
After working with so many other employees who had doctorate
degrees, Nabil decided to go back to school and get his PhD
in chemistry at Portland State University.
And thanks to Intel, he was able to pay for his degree and keep
his full-time job.
During that time, Intel was trying to find a faster,
more efficient way to process their microchips,
but nobody could figure it out.
And they asked at least eight other companies and research
labs for help.
Some said it couldn't be done.
Others worked on it for nearly a year with no success.
And so they asked Nabil if he wanted to give it a shot.
Within three days -- three days --
he came up with a solution that is now saving this company
millions of dollars a year.
And I will not embarrass myself by trying to explain what his
answer was --
-- and most of you probably know how it works anyway.
The point is, an investment in education paid off in a big way
-- for Nabil, for Intel, for the millions of workers and
consumers who benefited from that discovery.
So for all the daunting statistics about our educational
failings as a nation, for all the naysayers predicting
America's decline -- you've been hearing them lately --
stories like this give me hope.
Stories like these give me confidence that America will win
the future.
We know what works.
We know how to succeed.
We know how to do big things.
And all across this nation -- in places just like this one --
we have students and teachers, local leaders and companies,
who are working together to make it happen.
When it comes to competing with other nations for the jobs and
industries of the future, we are all on the same team --
the American team.
And if we start rowing in the same direction, I promise you,
there is nothing that we cannot achieve.
That's what you're proving here at Intel.
That's what you're proving in the schools and colleges of this state.
That's what America will prove in the months and years ahead.
Thank you, guys.
God bless you.